What does a strategic-based responsibility accounting system do?
A)Allows the strategy to be highly centralized
B)Focuses the strategy on performance measures of top management
C)Translates the strategy into operational objectives and measures
D)Adds a process perspective to the traditional functional based system

Question

Quizplus · Accepted Answer

A strategic-based responsibility accounting system translates the organization's overall strategy into operational objectives and measures, facilitating communication throughout the company, and aligned goal-setting. This helps to ensure that all departments are working towards the same strategic goals. Therefore, option C is the correct answer. Option A is incorrect because a highly centralized strategy can be limiting and inflexible. Option B is incorrect because top management's performance measures are not the only focus of a strategic responsibility accounting system. Similarly, option D is incorrect because a process perspective is only one aspect of a strategic responsibility accounting system.

What Does a Strategic-Based Responsibility Accounting System Do